Logistics giant Lineage has raised $4.44 billion in its biggest IPO of 2024

Lineage Inc., the world's largest cold storage operator, raised $4.44 billion in its initial public offering (IPO) launched last week in the U.S., the largest global IPO in 2024. reports Reuters.

The Novi, Michigan-headquartered company priced the nearly 57 million shares sold in New York at $78, up from the upper end of its previously indicated range of $70-$82.

The $4.44 billion IPO values Lineage at more than $18 billion, making it the largest offering since chip designer Arm's $4.87 billion last September.

Lineage shares began trading on Nasdaq on July 25, under the symbol "LINE", ending the day with a quote of $80.78, 3% higher than the IPO price.

Lineage, which specializes in temperature-controlled warehouses, operates 482 such facilities worldwide and serves more than 13,000 customers, many of whom are involved in the food supply chain as distributors, retailers and manufacturers.

Adam Forste and Kevin Marchetti launched the business as a single warehouse in Seattle in 2008. Since then, they've grown it through 116 acquisitions, generating $5.3 billion in revenue by 2023. In the past year alone, Lineage acquired Grupo Fuentes, Burris Logistics, Kennedy Transportation and Harness. The Burris acquisition brought Lineage eight new facilities, according to CNBC.

Forste and Marchetti's private equity firm, Bay Grove Capital, owns the majority of Lineage.

Lineage is structured as a real estate investment trust, which allows shareholders to deduct some of the taxes they pay on their dividends. The company used its cash flow for acquisitions and investments in its own business, posting a net loss of $162.8 million in the 12 months ended March.

Morgan Stanley, Goldman Sachs, Bank of America, JPMorgan and Wells Fargo were the lead underwriters of Lineage's initial public offering.

Global IPOs totaled $48.8 billion in the first half of 2024, down 18% from the previous year. This is the lowest half-yearly level since 2016, according to LSEG data. Receipts from US POs totaled $17 billion, more than twice the level of last year and the highest level in the last three years.